Question: please answer each question. Thank you! 1. How would you define economic exposure to exchange risk? 2. General Motors exports cars to Spain, but the

please answer each question. Thank you!

1. How would you define economic exposure to exchange risk? 2. General Motors exports cars to Spain, but the strong dollar against the euro hurts sales of GM cars in 5 pain. In the Spanish market, GM faces competition from Italian and French car makers, such as Fiat and Renault, whose operating currencies are the euro. What kind of measures would you recommend so that GM can maintain its market share in 5pain ? 3. Discuss the advantages and disadvantages of maintaining multiple manufacturing sites as a hedge against exchange rate exposure. 4. Evaluate the following statement: "A firm can feduce its currency exposure by diversifying across different business lines

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